Project Report from the year 2011 in the subject Business economics -
Company formation, Business Plans, grade: B, Santa Clara University,
language: English, abstract: Chipotle Mexican Grill, hereafter referred
to as Chipotle, is a fast-casual restaurant that specializes in a
limited menu mainly consisting of burritos, tacos and burrito bowls.
Chipotle is known for its ability to offer products made from
sustainable, organic ingredients, while remaining price competitive with
other fast food chains. Chipotle refers to this differentiation as "food
with integrity" and it is the driving force that has propelled the
company to where it is today. Since its foundation in 1993, Chipotle has
been tremendously successful, growing into a corporation that is now
worth roughly $8.5 billion (56). Chipotle's growth is a direct result of
the quality of its products, the consistency of its service and the
perceived differentiated value it has established in the minds of
consumers. Chipotle stands apart from others in a highly concentrated
industry because it does business differently in terms of its food,
restaurants and advertising. While most fast food chains rely on
advertisements that promote menu gimmicks, such as limited-time price
reductions, new items, value menu offerings and more, Chipotle focuses
on showcasing its quality ingredients. It also generates excitement for
its food through a number promotional events and word of mouth.
Strategic Move Even though the restaurant and bar industry is saturated,
there are not many competitors that offer organic ingredients within the
industry. To take advantage of the recent surge of consumers who demand
healthier, organic food, Chipotle has decided to enter into the
fast-casual Asian restaurant market with a new chain named ShopHouse
Southeast Asian Kitchen, hereafter referred to as ShopHouse. Staying
true to its position as a focused differentiator, Chipotle will operate
ShopHouse under the same philosophy that has made it so s
